Carlyle Group:
Anatomy of a Scamby Uri Dowbenko
Who needs a theory when you have a conspiracy called Carlyle Group?
As a prototypical Bush Cabal slush fund scam, the Carlyle Group has gained notoriety because of its name brand directors, members, and advisors - all celebrity politicians, former government officials and sundry unindicted criminal co-conspirators.
The Carlyle Group’s real claim to fame is not necessarily its flagrant conflicts of interest, but its relatively unknown insider scams using Other People’s Money (OPM).
According to corporate-government fraud expert Al Martin, author of “The Conspirators: Secrets of an Iran Contra Insider,” a first-hand account of Bush Family crimes, the Carlyle Group has capitalized on its high level contacts within the highest circles of global power.
In an exclusive interview with Al Martin, Al Martin Raw.com: Political, Economic & Financial Intelligence, he deconstructs the frauds of the Carlyle Group and explains in simple terms how it’s all done.
The Carlyle Group, after all, is the epitome of the Military Industrial Complex.
As a Bush Cabal-connected company, it prides itself on having government/ business insiders and their minions in a network that literally covers the globe. This is the hard core of the Bush Cabal
The Chairman Emeritus of Carlyle Group is Frank C. Carlucci, whose claim to fame was Deputy Secretary of Defense (1981-1982) and National Security Adviser (1987-1989). After his government stint, he headed the Sears/ Coldwell Banker scam.
The current chairman of Carlyle Group is Lou Gerstner, the former Chairman of IBM.
Sir James Baker III, Chief of Staff (1981 -‘85), and Secretary of Treasury (1985-‘89) under Reagan; and Secretary of State (1989 - 1993) under George H. W. Bush Sr., is a “Senior Advisor.”
Sir George Herbert Walker Bush, Director of CIA (1976-‘77) under Ford; Vice-President (1981-‘89) under Reagan; and President (1989 - ‘93), acts as a broker and also senior advisor.
Other name brand politicos connected to Carlyle include, former British prime minister John Major (Chairman of Carlyle Europe), Dick Darman, the former Reagan-Bush director of the Office of Management and Budget, and Arthur Levitt, former chairman of the Securities and Exchange Commission and Carlyle Senior Advisor.
In fact, the so-called Global Corporate Establishment can be described as a complex web of interlocking companies and executives. Since the Carlyle Group holds ownership stakes in 164 companies and ranks as the eleventh largest defense contractor in the US (but, as Al Martin wryly notes, “even though Carlyle has never sold a weapons system that actually works.”), this further emphasizes its pre-eminence within this world-wide web of fraud, and the somewhat disproportionate links to many foreign intelligence services as well.
“The Carlyle Group is a quintessential Bushonian operation,” says Al. “In other words, they don’t use a dime of the firm’s own capital, nor a dime of the firms partners capital. Including Frank Carlucci, etc. They use exclusively borrowed money and/or limited partnerships that they form to stick stock into. It is a 100% OPM company [company using other people’s money].”
“This also means that Carlyle Group deals are always highly leveraged because they have no equity in anything,” he continues, “The only real way they build equity is through general partnerships because, over time, with each passing year, another quarter or another half of one percent of the limited partnership equity gets transferred to the general partners up to the limit of 5% -10%, depending on where the partnership is incorporated. The general partners never put any money in, but they do expense back a management fee on top of that -- which is unusual.”
“Normally what is supposed to happen when you form a limited partnership is that the general partnership holds 5% upfront,” he says. “That is essentially their front-end load, as it were, for putting the deal together. They take 5% of the equity for no money, which constitutes their load. Then over time, usually a period of 10 years, that 5% of the GP will gradually increase to 10%. This means that over a 10-year time frame, one half of 1% annually of the equity is being transferred from the Limited Partnership to the General Partnership as a management fee.”
So how do they get enough liquid capital to buy assets? Is it through the funding by the limited partners? And how did they acquire United Defense? Carlyle Group, after all, is the definition of the prototypical “bottom feeder,” (buying bankrupt companies for pennies on the dollar) albeit on an unprecedented global scale
“Yes, United Defense was a limited partnership deal,” Al explains. “It was United Defense LP. If you notice -- almost all of the Carlyle Group deals have the LP after them. They are all separate deals, limited partnerships.
“They take their general partnership equity which really isn’t costing them anything because they are assessing management fees or charging back to the LP management fees on top of that equity. They then take that general partnership equity and its accompanying fee stream and hypothecate it at a bank, usually at Credit Lyonnais, the famous Bushonian Scamscateer Bank. That’s how George Bush Sr. was able to do the famous Credit Lyonnais Fraud of 1992, when the Bush Family ripped of Credit Lyonnais for $63 million. What gave them the ability to do it was having their boy as the chairman of the bank.”
“They take the General Partner equity that didn’t cost them anything to begin with,” he continues. “Then they’ll hypothecate the General Partnership shares, which are non-convertible. They're still voting shares, but non-convertible. It’s not collateral. There is a difference between collateral and hypothecation.
In other words, to hypothecate is to take a purported asset to a bank and get a line of credit or credit instrument in exchange for a pledge. They take the LP interests and hypothecate them to a loan, usually at Credit Lyonnais or they use it as a hypothecation to a Standing Letter of Credit.
“They will use that Standing Letter of Credit as leverage to get into another deal to buy something else,” Al continues. “They will use that full faith and credit obligation (FFC-LC) from a major bank and it’s as good as cash. They would post that LC to buy other assets or another deal. This is how the Great Republican Frauds work through these LCs. The LCs are as good as cash money, but they only become as good as cash money, when another party that owns an interest in it (because they have sold assets against it) goes to draw on the instrument. As long as they never draw on the instrument, the only thing it costs the pledgor of the instrument is whatever the fees are to carry the LC. It necessitates a ‘friendly’ bank and a ‘friendly banker.’”
“If you look at the banks that the Carlyle Group does business with, they are the same banks that all the large Bushonian frauds ($50 million and above) have been committed through. These include Credit Lyonnais, The Bank of Greece, The Jarlska Bank of Denmark, Credit Suisse, Daiwa, Banque Paribas, etc. It’s the same 12 banks again and again that these frauds have been perpetrated through, Banque Paribas Panama, Banque Paribas EAB.”
Carlyle Group is also well known for being a “Members Only Club” with its Crony Capitalists Pals, former world politicians, Bushonian Cabalists and sundry Trilateralists and Bilderberger Group lunch chums.
The question comes up -- Why do they do it this way? How do they get guys like former Canadian Prime Minister Mulroney on the board?
“It’s for control,” Al replies. “With each pal comes that pal’s separate sphere of influence. Then you build a company through a conglomeration of conjoining spheres of influence under one umbrella. That’s what gives them the ability to wheel these deals with no money. Then they use an asset (at the core of the fraud is an asset and, in this case, the asset is a general partner equity on a real deal) that has been used to pledge or hypothecate top a bank in exchange for a full faith and credit letter of credit LC. Or they will do it through Marsh McLennon for instance and hypothecate it for some sort of performance, fidelity and / or guarantee instrument”
And who keeps track of how many times the same instrument has been hypothecated or pledged toward a line of credit?
Al answers, "Obviously Carlyle Group keeps track of how many times the same asset has been hypothecated against a different deal - but nobody else does.”
“That commercial property deal that Carlyle Group owned in Riyadh was a pretty good example - taking the GP equity hypothecating it a FFC LC (Full faith and credit letter of Credit) at European Arabian Bank (EAB) which then became part of Banque Paribas, the most corrupt bank in France and one of the most corrupt banks on earth.”
“Credit Lyonnais is also up there. If you’re going to commit a huge fraud, it’s always easier to use the large banks of Europe or Japan. These are the socialist, welfare model countries because you know the government will pump as much money as necessary into a failing bank to keep it alive. They never let anything fail, and that’s why their economies have become so inefficient.”
“How much money has the French government pumped into Credit Lyonnais in the last 20 years? Billions of francs.”
“The only difference between a communist state economic model and a socialist welfare state (centralized systems in which state assets are nationalized under the control of the regime) is that a socialist state has layers in between, that is they have banks which effectively act as proxies for the state, instead of the state acting directly.”
People have wondered about the long-standing ties between the Bush Family, the Bin Laden Family, and the Carlyle Group business, in which they are all involved.
“The real Bin Laden connection comes from Osama bin Laden’s uncle,” Al explains. “Osama’s father's brother (his uncle) ran the construction business. Osama’s father was a minority partner since he had been a screw up all his life. But he got the contracts to build the US Army bases, US Army medical facilities, communications facilities and office buildings in Saudi Arabia. The Bin Laden family had been involved with the Carlyle Group since it had been formed in the late 1970s. Carlyle represented them and then the involvement deepened from there.”
“Carlyle formed a series of limited partnerships with wealthy Bushonian Cabalists, including George H.W. Bush himself and Henry Kissinger, who were partners in the same limited partner-ships. They borrowed money from banks based on bogus equity and other scam deals. The banks then extended full faith letters of credit to the partnership which then in turn extended a line of credit to the Bin Laden Construction consortium.”
Al Martin also points out that the common agent between the Bush Family, the Carlyle Group and the Bin Laden organization was former Saudi chief of intelligence Ghaith Pharaon.
“Then the limited partnership through Carlyle became not equity participants but profit/ revenue participants through bin Laden Construction Company,” Al explains. “Since the Bin Laden deals were all non-compete non-bid contracts, they simply keyed all the prices. Key means to double. In other words, if it cost them $10 million to build an office building in Saudi Arabia, they charged the US Army $20 million and the Bin Laden Construction Group, then took a piece of that $10 million The partnership group under Carlyle took a piece of that $10 million. The beauty of the scam and how it all works is that the people who got the profit never had any of their own money in it.”
“This would obviously make the bonds of friendship (and profit taking) between the Bush Family and Bin Laden Family even closer, under the guise that the Families that prey together stay together.
This is at the very heart of the way that Bushonian Cabalism works and the way it makes money.”
“What makes these scams bullet-proof,” says Al, “is that every Bushonian Scam mentioned in the book [‘The Conspirators’] and the ones I’ve mentioned before, the common linkage between all these scams (and this gets into the essence of How the Real World Works and what it’s really about on this planet) is that these deals are made as complex as you can possibly make them, legally complex that is. They don’t have to hide anything. They involve as many entities in as many different jurisdictions as possible. They don’t have to shred the documents. You can actually follow these deals, and there actually is a paper trail on every single one of these bogus deals. The problem is that the paper trail is so enormous and so complex that nobody in Mainstream Media or Cred Media (as BBC calls it, or "Credible Media”) can follow them. The age of investigative journalism is over because they haven’t got the money to allow journalists to ‘follow the money’ and put these deals together and expose them.
Al Martin is referring to a deal, for example, in which a limited partnership is domiciled in Netherlands Antilles, which is then owned by an international business company (IBC) in the Turks and Caicos, which is held by another anstalt or business corporation in Liechtenstein, which is the holding company
“This is the complexity. They use as many different types of legally formed entities in as many different discrete jurisdictions as possible, wherein it is inherently difficult to follow a paper trail and furthermore these are jurisdictions where there is no regulatory authority and where monies and assets are essentially sacrosanct from being seized by creditors or by any other nation and furthermore, they are tax free.”
“Iran Contra played so much of a part in all of this because Iran Contra was the impetus to change the way media does business. Why? Because the Bush Cabal was frightened that what they called Iran Contra would be revealed to the public,” Al concludes. “It wasn’t the individual frauds they were concerned about. They were concerned that if all of Iran Contra was revealed, it show the public the way everything works and What It’s Really All About. This is what my attorney Marc Signoff used to call ‘standing over the abyss and looking into the Great Chasm, wherein lies the Great Vortex of Truth.’”